Bitcoin: Strong bearish break from consolidating triangle
Yesterday’s signals produced an excellent short trade from the bearish price action at $10,235 which has been very profitable so far.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered prior to 5pm Tokyo time Friday.
Long Trade Ideas
Go long at a bullish price action reversal on the H1 time frame following the next touch of $9,073, $8,893, or $8,610.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.
Short Trade Ideas
Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,767 or $10,235.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
BTC/USD Analysis
I wrote yesterday that the dominant consolidating triangle technical pattern was due for a breakdown.
I was watching for a strong breakdown below the $10,000 which was quite likely to produce a strong fall down to the $9,000 area. This was an excellent call, and very actionable and profitable. The price movement has unfolded exactly as I predicted.
The price is showing short-term bearish price action, so although this downwards movement is probably mostly played out already, it looks likely to continue down to hit the support level at $9,073 over the coming hours, so might be traded short on the shorter time frames.
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.